Rival bidders for Tully's claim last week's auction ended too soon
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SEATTLE -- Actor Patrick Dempsey's bid to buy Tully's may be in jeopardy. Rivals -- including Starbucks -- are claiming the company's bankruptcy auction last week ended too soon.
Dempsey sported a victory smile when he walked into a Tully's last Friday after he had just won the coffee company at a bankruptcy auction with a $9.1 million bid. He pledged to the keep the Tully's name, its 500 employees, and defeating his primary rival Starbucks.
But now in a slew of court filings, creditors and rival bidders including Starbucks are objecting to the bidding process, some saying it ended prematurely.
Even the Tully's founder, Tom O'Keefe filed in support of re-opening of the bidding.
"The shareholders were well served by a complete auction process and it doesn't appear that was the case," O'Keefe said.
Starbucks and its partner offer was over $1.3 million more than Dempsey's. But a source says uncompleted licensing agreements prevented Starbucks from entering a complete bid when the auction ended.
O'Keefe supports Dempsey's efforts to save the company, but says Tully's shareholders, which he is one the largest, are owed the biggest price for the company.
"So the shareholders have an opportunity to receive the greatest return possible, period," O'Keefe said.
Dempsey's team tells KOMO News they abided by the bidding rules set by the court and should be awarded the company. While Tully's management has accepted Dempsey's bid, it will now be up to a bankruptcy to decide if the auction ended prematurely or whether it should be restarted.
Dempsey and all the rival bidders are expected to appear in bankruptcy court Friday afternoon, and that's when the judge may decide if the whole auction process was valid.
More information:
AgriNurture, Inc. Statement
Global Baristas Declaration
Green Mountain Protective Objection
Dempsey sported a victory smile when he walked into a Tully's last Friday after he had just won the coffee company at a bankruptcy auction with a $9.1 million bid. He pledged to the keep the Tully's name, its 500 employees, and defeating his primary rival Starbucks.
But now in a slew of court filings, creditors and rival bidders including Starbucks are objecting to the bidding process, some saying it ended prematurely.
Even the Tully's founder, Tom O'Keefe filed in support of re-opening of the bidding.
"The shareholders were well served by a complete auction process and it doesn't appear that was the case," O'Keefe said.
Starbucks and its partner offer was over $1.3 million more than Dempsey's. But a source says uncompleted licensing agreements prevented Starbucks from entering a complete bid when the auction ended.
O'Keefe supports Dempsey's efforts to save the company, but says Tully's shareholders, which he is one the largest, are owed the biggest price for the company.
"So the shareholders have an opportunity to receive the greatest return possible, period," O'Keefe said.
Dempsey's team tells KOMO News they abided by the bidding rules set by the court and should be awarded the company. While Tully's management has accepted Dempsey's bid, it will now be up to a bankruptcy to decide if the auction ended prematurely or whether it should be restarted.
Dempsey and all the rival bidders are expected to appear in bankruptcy court Friday afternoon, and that's when the judge may decide if the whole auction process was valid.
More information:
AgriNurture, Inc. Statement
Global Baristas Declaration
Green Mountain Protective Objection
"Unfair! Unfair! I was supposed to win!"
I think I would trust Dempsey more that Shultz that's for sure. Let someone with differnet Ideas own the company rather that Starcrooks!
Is everyone here stupid or just hateful? This is an auction, people. The highest bidder wins. Dempsey's group was the third-highest bidder and shouldn't have been announced as having won the auction in the first place. Granted, this auction is slightly different in that the final decision is also based on the capability of the winner to continue to run the company successfully. Who has more experience running coffee companies: Starbucks or Patrick Dempsey?
Also, if you'd done your research you'd know that Starbucks has stated that, if they should win the auction, they intend to keep all current Tully's employees as long as they meet Starbucks barista standards.
Make your lame comments about Starbucks dominance and burnt coffee, but the best thing that could happen to Tully's shareholders and employees is if Starbucks prevails in this auction.
 @Bscowler Did you not read the article? Starbucks had not even submitted a bid before the end of the auction! They are whining about it ending too soon, but too damn bad for them! It was no secret that the company was going into auction, and they have enough lawyers and accountants that they should have been able to get their act together before they did. You snooze, you lose!
In my opinion, Dempsey's group should be the winners because they plan on keeping all of the employees, and leaving the Tully's name alone. It's good for people and for business. Starbuck's would only rape, pillage and burn Tully's into the ground. Down with Starbuck's!
what a bunch of sore loser ,Starbucks just wants it so they shut down the ones  that are next to any starbucks
Sounds like Starbucks are sore loosers
Seems to me if the judge awarded Tullys to the dempsey group, that would be it. If the judge overturns his decision now, that would really suck. I wont even accept Starbucks gifts anymore.
I always thought that when an auction was over it was over. All these machinations after the fact make this into a total farce. Thank goodness the only I time I ever drink Starbucks (or Tullys for that matter) was if someone bought it for me. The both taste awful.
Need to send old Howard a crying towel. Starbucks is some of the WORST tasting coffee I have ever had! All you can smell around their stores is the smell of burnt coffee beans. Give me Dutch Bros. over them! I hope Dempsey's group gets to keep Tully's, and they make it huge!
Note to Starbucks.... Fire your PR/Marketing team. The Starbucks name and brand continues the downhill slide by learning the subtle art of bullying.
Starbucks wil not stand still if their attempt at world domination gets interfered with. Â Though it sounds like I'm being facetious, I'm only slightly kidding. Â Seriously. Â Starubucks will NOT be satisfied until they've completely Walmarted the coffee industry, just like Guitar Center destroyed the musical instrument market, Walmart destroyed the small department stores and specialty shops, Home Depot/Lowes destroyed the local hardware and garden stores, and Subway has destroyed the local sandwich shops. Â Starbucks and their ilk can't help it. Large American corporations no longer serve their customers or their communities, only their investors. Â And they don't care who they mow down in order to make a handful of people filthy rich. Â The "oh we give to local charities" is a joke. Â And how much have these corporations cost America in the destruction of our culture and livlihoods? Â Oh goodie!!! More minimum wage jobs to replace the actual bread winner jobs that used to sustain our communities. Â I will never set foot in a starbucks, or Tully's or SEattle's Best, if they succeed with this farce.Â
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Gosh, they miss a lot here. Â The company that provides the beans to Tully's and owns the Tully's name today backed off on their stance that they did not want Starbucks to win, further jeopardizing the case. This was on another channel. Â And now their own founder is saying they should go with the highest bid for the shareholders? Â Good grief. Â I'm getting nervous and no doubt the 500 employees of Tully's are too.
 @Doxie Well, obviously starbucks, et al, sweetened the deal for those other people, behind the scenes. Â
 @DT Seems so.  What a shame if Starsux gets their hands on those stores and makes more of their cookie cutter stores.  Diversity is a good thing.
Oh, whine whine.
Interesting, a couple of years ago Starbucks shut down a bunch of locations, & now they want to take over a bunch of Tully locations? Wouldn't surprise me in the least if they already had locations in these areas & closed them down due to low sales (or in reality having too many locations in that area)
Starbucks sucks!Â
You snooze, you lose.
Would the losing bidders like Sour Grapes with their coffee?. Seriously, if the bew suitors really  wanted the company, they should have put their best and final offer up front which they failed to do.
You snooze you loose. SOLD!!!